U.S. House and Senate leaders reached a deal late last week on a $789 economy-recovery package, which includes $21.4 billion for health insurance assistance for laid-off workers. COBRA-eligible workers would receive a 60% subsidy toward their COBRA premiums for nine months.
The House-Senate conference report on the stimulus plan also states that individuals with annual incomes over $125,000 (for singles) or $250,000 (for couples) would not be eligible for the COBRA subsidy. The Treasury Department would pay the subsidy and allow employers that administer COBRA benefits to receive a credit on payroll taxes.
